Would frequent trading in an IRA be considered self-dealing?

Say a person trades multiple times throughout the day in their IRA, would this be considered self-dealing especially if they were a day trader who made their living by trading?



It would not be self dealing as long as his IRA trading is kept totally separate from his day trading in taxable accounts. Should he be audited the first thing the IRS would probably look at is whether he is creating wash sales by taking losses in a taxable account and replacing the shares in the IRA. But if he uses mark-to-market accounting for his taxable trading, that should eliminate the wash sale exposure.



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